Crypto firm Cred has filed for Chapter 11 bankruptcy protection and now customer worry about their money.
The US-based lending company filed the documents on November 7, according to Coin Telegraph.
In its official statement, Cred said it had “commenced a voluntary Chapter 11 case in the United States Bankruptcy Court for the District of Delaware to explore strategic alternatives, including, without limitation, the restructuring of its balance sheet or the sale of its business as a going concern, in a court-supervised process.”
The news came on the back of Cred suspending fund inflows on October 28 for two weeks.
“We would like to further clarify that Cred is not under investigation,” the company said on Twitter. “Cred approached law enforcement to help investigate irregularities in the handling of specific corporate funds by a perpetrator.”
Nevertheless, cryptocurrency wallet company Uphold has ripped up its partnership with Cred and customers are now wondering if their money is safe.
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